Just-In: GameStop’s Crypto, NFT Wallet Goes Live; Shares Rise

Videogame retailer GameStop said on Monday its new crypto and NFT wallet service is now live.

The retailer said its wallet is available for use as a Google Chrome extension, and will also allow transactions on its upcoming NFT marketplace. The wallet is self-custodial, and is based on Ethereum.

GameStop’s shares rose over 3% in premarket trading. But they are down nearly 40% this year, owing to a market crash.

The wallet launch also comes amid a sharp decline in the crypto market, especially in wake of the recent Terra crash.

GameStop makes crypto push this year

GameStop announced the launch through a tweet. The move marks further progress in GameStop’s hotly anticipated move into crypto and web3 technology.

The retailer’s NFT marketplace is set to launch in the coming months. The firm recently also launched a website for the marketplace.

GameStop’s push into web3 is part of a turnaround plan launched by Chairman Ryan Cohen.

Cohen is well regarded among GameStop’s retail shareholders, who played a major role in boosting the company’s valuation in a “meme stock” rally last year.

The rally was also what pushed GameStop’s management to consider avenues behind physical videogame retailing- a space that is severely declining in market share.

Wallet launch comes amid crypto, NFT crash

But while GameStop has ambitious plans for crypto, it is executing them amid one of the worst crypto crashes seen in recent times. Total crypto market valuation has slumped over $500 billion so far in May, with little scope of near-term recovery.

NFTs are also seeing a major decline in interest, with top projects such as Bored Apes and Azuki logging bigger losses than most cryptocurrencies.

GameStop will also enter an extremely crowded market, given that major exchanges such as Coinbase and Binance already offer self-custodial wallets. NFT marketplaces OpenSea and Looksrare also have a chokehold on the space.